We can’t believe that 2020 is gone. We are excited to welcome the New Year 2021. This report is the last income report for the year 2020. December 2020 was our best month ever for our dividend income.
In December, we had the magical white Christmas. Usually every year, we always have a big dinner with my mom, my sisters’ family and brother’s family coming over for Christmas’ dinner. This year, our Christmas’ dinner was quiet, just our own family. Our city has been locked down because of the second wave for Covid-19. The malls were closed in our city on Boxing days therefore there was no shopping for us. Here are a few photo shots we took in December..
Sample of foods we ate for the month of December 2020..
Passive Income
For the month of December 2020, we have received $2,076.88 of dividend income and some income from writing options. The total passive income for the month of December 2020 was $3,434.23 . This passive income included both incomes from dividends and option calls.
Dividend Income
December was best month ever for our dividend income. This was a first month that we passed the $2,000 a month in dividends. The following companies have paid us in December 2020:
| No | Name | Ticker | Dividend Income | Dripped |
|---|---|---|---|---|
|
1 |
Alimentation Couche-Tard Inc. |
ATD-B |
$11.38 |
|
|
2 |
Broadcom Inc. |
AVGO |
$72.00 |
|
|
3 |
Brookfield Renewable Partners |
BEP |
$130.53 |
2 |
|
4 |
Brookfield Infrastructure Corporation |
BIPC |
$1.93 |
|
|
5 |
Brookfield Infrastructure Corporation |
BIP |
$68.30 |
1 |
|
6 |
Brookfield Property Partners |
BPY-UN |
$193.13 |
9 |
|
7 |
Canadian National Railway |
CNR |
$57.50 |
|
|
8 |
Enbridge Inc. |
ENB |
$787.32 |
19 |
|
9 |
Fortis Inc. |
FTS |
$77.77 |
1 |
|
10 |
Johnson & Johnson |
JNJ |
$36.36 |
|
|
11 |
Main Street Capital Corporation |
MAIN |
$38.54 |
1 |
|
12 |
McDonald's Corporation |
MCD |
$25.80 |
|
|
13 |
Manulife Financial Corporation |
MFC |
$75.60 |
3 |
|
14 |
Northland Power Inc. |
NPI |
$14.40 |
|
|
15 |
Realty Income Corporation |
O |
$30.42 |
|
|
16 |
Visa Inc. |
V |
$16.00 |
|
|
17 |
Vanguard FTSE Canadian Capped REIT Index ETF |
VRE |
$4.12 |
|
|
18 |
ARK Innovation ETF |
ARKK |
$265.76 |
|
|
19 |
ARK Genomic Revolution ETF |
ARKG |
$134.32 |
|
|
|
|
Total: |
$2076.88 |
36 |
We received total of $2076.88, an 305% increased from December, 2019 from 19 companies. Out of $2076.88 received, $1,457.68 is in CAD and $619.20 is in US dollar or 70 to 30 split. For simplicity of this calculation, we are using 1:1 rate for the currency approach. Year to Date, we have received total of $11,768.02 in Dividend Income. This is 147% more than the dividends we received for the year 2019. Please check the Dividend Income 2020 for details. Our goal for 2020 was $10,000 dividend income. We exceeded our goal by 11.76%.
By the end of 2020, our Projected Annual Dividend Income (PADI) was $15,863. Our goal for 2021 was able to receive $20,000 in the Project Annual Dividend Income.
My top 3 dividends for December were ENB, ARKK and BPY. They were combined for total of $1,246.21 or 60% of the dividend income this month. Ideally, we wanted the top 3 companies of our monthly dividend no greater than 50% of the monthly dividend income because we wanted to minimize the risk of dividend cut. Therefore, we will add more money to Realty Income (O) , Broadcom (AVGO) and Starbucks (SBUX) or other dividend stocks to diversity our income.
Options Income
Selling covered calls is perhaps the best options strategy for extra income while waiting for the stock to grow. While selling put option is strategy for extra income designed to buy stocks at a lower cost.
For our growth stocks in my portfolio, we decided to enhance my passive income with selling covered call/put options. The following transaction were expired in the month of December 2020:
| Date | Transaction | Expired Date | Amount | |
|---|---|---|---|---|
|
1 |
03-Dec-2020
|
CALL SBE45 |
18-Dec-2020
|
$134.05
|
|
2 |
03-Dec-2020
|
CALL NIO60 |
18-Dec-2020
|
$228.04
|
|
3 |
03-Dec-2020 |
PUT FUBO30 |
18-Dec-2020 |
$988.03 |
|
4 |
04-Dec-2020 |
CALL IPOB25
|
18-Dec-2020 |
$308.04 |
|
5 |
06-Dec-2020
|
CALL IPOB25
|
18-Dec-2020
|
-$511.96 |
The total income for selling Call/Put option for the month of December 2020 was $1146.20 US dollar compared to $1357.35 US from November 2020. We did lose money in the CALL IPO25 because we didn’t want to lose our shares so we had to buy the call back. Our plan going forward is continue to sell Monthly covered call/ far out of the money Put for extra passive income. Our strategy of selling options is using the short expiry time. (i.e. Monthly option)
Dividend Snowball Update
Our Dividend Snowball Portfolio was able to accumulate more Dividends in December for growing to a bigger Dividend Snowball. The $3,434.23 total income that we received in December were used to reinvest in dividend growing companies to generate more dividends.
Our Dividend Snowball investing is relying on 3 things:
- Dividend Growth
- Reinvest Dividends
- Additional Contribution
In December 2020, our dividends increased 305% YoY compared to December 2019. We had 3 dividend increases in December. Therefore the growth of the our dividend income depended on Dividend Reinvestment and Additional Contribution to purchase of new stocks.
Dividend Increases
December 2020, we have only 3 companies increased the dividend.
| Ticker | # of Shares | Original Dividend | Original Dividend | % Change | Dollar Change |
|---|---|---|---|---|---|
|
AVGO |
20 |
$13.00 |
$14.40 |
10.8% |
$28.00 |
|
NRZ |
310 |
$.60 |
$.80 |
33.33% |
$62.00 |
|
ENB |
991 |
$3.24 |
$3.34 |
3.08% |
$99.10 |
The total Dividend increases were $189.10. At 4% dividend rate, these increases were equivalent to additional $4,700 invested in our portfolio in order to generate $44 of dividend income. We were happy with the increase.
| Month | 2019 | 2020 | YoY% |
|---|---|---|---|
|
Jan |
$303.30 |
$829.32 |
171.64% |
|
Feb |
$195.63 |
$409.79 |
109.47% |
|
Mar |
$365.59 |
$878.85 |
140.39% |
|
April |
$413.77 |
$947.88 |
129.08% |
|
May |
$259.79 |
$483.04 |
85.93% |
|
Jun |
$397.69 |
$1086.17 |
173.12% |
|
July |
$611.83 |
$1074.04 |
75.55% |
|
Aug |
$215.28 |
$539.82 |
150% |
|
Sep |
$288.39 |
$1518.41 |
426.51% |
|
Oct |
$896.64 |
$1271.16 |
41.77% |
|
Nov |
$512.08 |
$652.66 |
120.68% |
|
Dec |
$512.08 |
$2,076.88 |
305.58% |
|
Total |
$4757.74 |
$11,768.02 |
147.34% |
We were very happy to see our Dividend Income for the year 2020. Our YTD Dividend Income is 147.34% of the 2019 year. Our current Projected Annual Dividend Income (PADI) is $15,863. We have reached our goal of $15,000 in the PADI for the year 2020. For the year 2021, we are planning to have $20,000 in the PADI.
Details of the transactions for the month of December 2020 were posted in the post ‘December Buys/Sells‘.
This month, we added $79.60 to our annual dividend from our buys/sells in December.
Dividend Reinvestment Plan (DRIP)
In December, we were able to drip 36 shares for the total of $1,287.57 of the dividend income. We are enrolled in DRIP Plan whenever it is possible. Using DRIP Plan, we increased
Portfolio Update
By the end of November, our portfolio was $443,569. Our portfolio at the end of December 2020 was $497,276 or +11.5% by the end of December. Our biggest gain came from our Questrade Account (24.34%) for the month of December 2020. Overall, we gained total of $44,322 for the month of December.
Below is the chart of all accounts from Dec 1, 2020 to Dec 31, 2020
By the end of year 2020, we gained total of $127,956.69. We were happy with our progress in the year 2020. Hopefully, the year 2021 will be another successful year.
Below is the picture of our whole year investment accounts:
Summary
December was a good month for us. We were able to generate total of $3,434.23 in passive income. Our Dividend Snowball increased 147% year over year.
Our options were doing well for us. In 2021, we would like to continue to sell more options to supplement our income.
Our Dividend Snowball portfolio is progressing well for us. We are happy with our buy/sell transactions in December.
How was your passive income in December?
Let the Dividend Snowball rolling!!!
Thanks everyone for reading. Feel free to leave comment below.
Thanks,
Sam
Disclaimer
I am not a licensed investment Advisor or Tax professional; Therefore all content posted on this blog represents my personal views and opinions and should never be considered as professional advice. This blog should be viewed for entertainment or educational purposes only. Not as recommendation to buy/sell certain stocks. Please do your own research before buy/sell stocks.
I am just sharing my journey of buying and holding certain stocks for my journey to financial freedom. My thoughts, opinions and research are my own;therefore they should not be taken as a reason for you buying or selling certain stocks.
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